If you’re interested in becoming a real estate investor, this video will help you avoid a few common mistakes. The first mistake is when investors rush to fill their property. It is far more expensive to remove an individual from your property than having a vacancy for a month or two. Rushing leads to an improper screening of the tenant.

The second most common mistake is the mishandling of the security deposit you receive from the tenant. It is important to do a walk through of the property with the tenant to address the condition that the property is in. The money that is given to you by your tenant is not your money, it should be held separately in an escrow account under their name and social security number. You are simply holding this deposit for what could potentially be a problem.

Another mistake is understanding that this investment is a business, not a hobby. Your tenants are your customers. A book with great pointers on this topic is “Secrets of a Millionaire Landlord.”

With a business comes a team, having a team is a huge part in this investment. The mistake is made when you believe you can handle an investment alone. Having professionals involved is a key role to this investment. Make sure you have your agent, closing attorney, mortgage professional, financial adviser and CPA lined up for each investment you make.

The number one thing to avoid is fearing the investment. Investors sometimes do not start soon enough, but this is where wealth is created. Do not hesitate! A book to help with this step in getting started is “Rich Dad Poor Dad.”

If you have any questions on becoming a Real Estate Investor, contact Stiles Law by calling (781)319-1900.

Copyright © 2020 Stiles Law, All rights reserved. Stiles Law is a Massachusetts licensed law firm and all content is based on Massachusetts law. The information presented above is meant to be used for general informational purposes and it should not be construed as legal advice or legal opinion on any specific facts.